Everyman Cinema CEO Departs Following Recent Profit Warning
Everyman Media Group is experiencing significant leadership changes following a recent profit warning. CEO Mr. Scrimgeour, who took over the role in January 2021, has announced his departure, marking a pivotal moment for the company.
CEO Departure Amid Profit Warning
Mr. Scrimgeour previously led the French restaurant chain Cote Brasserie since 2015 before joining Everyman. His tenure included key challenges, particularly related to the COVID-19 pandemic and ongoing economic pressures.
Financial Challenges
In a trading update earlier this month, Everyman reported disappointing results. The company projected revenues of £114.5 million for 2025, along with underlying earnings of at least £16.8 million. These figures represent a decline from prior expectations, which were £121.5 million and £19.9 million, respectively.
Chairman’s Remarks
- Philip Jacobson, the chairman of Everyman, praised Mr. Scrimgeour for his contributions.
- He highlighted Scrimgeour’s role in leading the business through recovery post-COVID, resulting in more than doubling revenue.
Market Reactions
Dan Coatsworth, head of markets at AJ Bell, noted that upon Mr. Scrimgeour’s arrival, he faced a series of crises, including the pandemic and cost-of-living pressures. Despite recovering some market share post-pandemic, Everyman’s share price fell by 76% during his leadership.
Competitive Landscape
The upmarket cinema chain has lost its distinctiveness in a competitive market. Rivals like Vue and Odeon have adopted similar features, such as reclining seats and bar services, diminishing Everyman’s unique position.
Future Prospects
There is speculation regarding Blue Coast Private Equity, which holds a 29% stake in Everyman, potentially acquiring the chain. This move could lead to a shift away from public scrutiny, aiming for a turnaround strategy.
The departure of Mr. Scrimgeour signals a significant transition for Everyman Media Group as it navigates these challenging market conditions.
